Bank Of England Plan Addresses Credit Crunch

Law360, New York (April 21, 2008, 12:00 AM EDT) -- The Bank of England launched a plan on Monday to bring much-needed liquidity to the nation's home loan markets by letting banks temporarily exchange some of their mortgage-backed securities for U.K. treasury bills, while the European Union is reportedly investigating the plan.

A spokesperson for the EU's competition watchdog said on Monday that the EU is “in touch” with British authorities about the plan, it is “far too early to start speculating about whether it is state aid” under the EU's competition rules, Agence France Presse...